Research and Analytics
CIPFA Private Finance Initiatives / Public Private Partnerships
This publication provides details of Private Finance Initiatives (PFI) and Public Private Partnerships (PPP) across all sectors of Local Government. It includes information on project costs and financing, budgeted and actual times of work undertaken and detailed descriptions of any outputs, expectations and problems encountered.
Of the 302 responses to the survey, 81 Authorities had entered into PFI/PPP projects, covering between them a total of 146 projects. A sector, department, regional and date of approval breakdown of these projects is shown in Tables 1 to 4.
The sector breakdown in Table 1 shows that 45% of projects fall into the category of Education, with Transport and Street Lighting the next highest at 14%.
Table 2 illustrates the number of projects broken down by department. Not unexpectedly, when considering the sector split, DfES accounts for the highest number followed by Scottish Executive and ODPM.
The regional breakdown shown in Table 3 indicates a wide spread of projects across the UK.
The year of approval breakdown in Table 4 indicates that the number of PFI/PPP projects appears to be on the increase with the largest numbers found in 2002 and 2003.
Tables 5 and 6 summarise the average budgeted and actual timings between each stage of a PFI/PPP project. The actual length of time taken between Project Review Group (PRG)/ Scottish Executive approval and contract signature is on average slightly longer than the budgeted time. The time between both contract signature and the start of service provison and the start and end date of core capital however was less in actuality than was budgeted for.
Table 7 summaries the average PFI/PPP project costs. The average project cost is £88.3 million, of which 45% are capital costs and 55% revenue. This split differs across sectors with a higher capital proportion for housing (59%) and lower proportion across other services (28%).
Table 8 illustrates the average project financing costs. Approximately half came from Government Grants with the majority of the remainder coming from Local Authority revenue sources, which suggests that Government Grants form the most significant element of Capital financing. Procurement costs averaged over £1 million for all services, however Transport and Street Lighting projects incurred more than double this amount.
Table 9 shows that staffing levels for PFI/PPP projects averaged 6.8 FTEs, comprising 57% in-house staff and 43% external consultants. On average, almost 50 staff or FTEs transferred to the Private Sector as a result of each project. It should be noted however that this figure is heavily weighted by Education projects.
Satisfaction and Consideration
Table 10 summarises post-project feelings. For more detailed opinions, please refer to the relevant columns in the main tables. A very high proportion (almost 97%) of authorities would still have undertaken their project(s) in hindsight. Table 11 illustrates how many Local Authorities have considered undertaking PFI/PPP projects but not gone ahead.
Subscribers, please use the left hand menu and non subscribers click below
CIPFAstats Current Datasets
Please click Historical Data to access those publications that are no longer part of the CIPFAstats survey range. These are available to full internet subscribers only